North Carolina Down Payment Assistance Systems

Online Merchant account - These systems are the Down Payment Assistance Program as well as the Mortgage Credit Certificate.

Also you buy a home between December 1, 2009 and January 1, 2009 and should you qualify for one of those plans, it is also possible to qualify for the $8,000 tax credit only enacted into law.

First, who is a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the past three years. Here is the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with average and low incomes. All home owners can claim an itemized deduction. The MCC takes this a step further. An MCC “reduces your tax liability depending on a portion of the mortgage interest that you pay.

Should you qualify for the MCC, it is possible to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes. You are able to save up to $2,000 on your taxes.

Should you qualify for the MCC, for 2009, you may have the ability to unite this. This would reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income along with the purchase price of the house you're buying. Household income means the “gross income of the mortgagor and every other man expected to live in the home who's 18 years of age or older.”

House price limitations that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Man $61,500 2 Persons $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Residence $210,000

Home buyers that need help with their down payment and closing costs might be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This program has more rigorous income limits than the MCC program outlined above. Like the MCC program, it could be used in conjunction with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nevertheless, can't be employed together with all the MCC. This is an either or situation.

The income and house price limits Durham and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Persons $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing Home $210,000